Landlord or Tenant Carpenter can help with lease renewal for residential and commercial property.
The Landlord and Tenant Act 1954, Part II (as amended) provides security of tenure to tenants of business premises and a right of compensation at the end of the tenancy. The Act enables the tenancy to automatically continue upon the expiry of the term, requires a landlord who desires possession of the premises to establish one or more grounds stipulated in section 30 to the satisfaction of the Court, and it also provides the tenant with the right to apply for a new tenancy.
Carpenter have considerable expertise of dealing with lease renewal cases and undertake valuations to determine the current market rent, undertaking negotiations with the tenant or landlord or their representatives. In instances where an amicable negotiated settlement cannot be reached, Carpenter would prepare and present oral and written evidence and submissions to the Courts regarding the lease renewal and interim rent. If appropriate and in order to save time and save costs we will assist in referring the rent decision and also make submissions to an Arbitrator or make use of the PACT service – view here.
Carpenter’s initial report will include the current open market rent and it will have full regard to the terms of the lease together with any relevant licenses such as deeds of variations or licenses for alterations and improvements.
The report will include advice on the appropriate timescales as well as our recommendation of the strategy to adopt. For instance, if the current rent being paid is higher than the current open market rent, then it may be advantageous for the landlord to allow the tenant to continue to hold over at the existing higher rent as opposed to terminating the lease and initiating the lease renewal process.
Consideration should always be given to renegotiating the terms of the new lease as opposed to allowing the new lease to continue on the same terms as the expiring lease. However, compensation may have to be paid to the affected party.
Opting out of the security provisions of the Act is possible, but it grants the landlord with a considerable advantage as the tenant will not have the statutory right to remain in occupation upon expiry of the lease. At renewal stage, the tenant might have to accept the Landlord’s terms or vacate the premises.
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